A buyer's guide to inventory coverage

Most buying desks track what they hold. Fewer track how long it lasts. Coverage turns a pile of units into a number you can plan against: the days of demand your committed inventory can meet before you have to buy again.

Measure it the same way every week

Coverage only means something if the inputs are stable. Take committed inventory, including product on the water and on order, and divide it by average daily demand over a period long enough to smooth out one large customer.

• Count product on order, not only product on the yard.
• Use the same demand window for every species and grade.
• Track it by item, not by total value, or shortages hide inside the average.

Decide your floor before you need it

The useful part of the number is the threshold. Set a floor per item, agree what happens when coverage crosses it, and the buying decision stops being a judgement call made under pressure.

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